How Can I Become a Donor?
Funds can be established by gifts of cash, marketable securities, appreciated property (such as real estate), or closely held stock or even tangible personal property. The Foundation liquidates the asset and uses the net proceeds to create the fund.
A named fund may be created for as little as $10,000. The arrangements can usually be completed during one meeting, with funds governed by a one-page agreement. A fund begins with the answers to three questions:
- Who will this legacy be named for?
- What are your charitable goals?
- What's the best way for you to save on taxes?
YOU choose when and how to give.
Giving Now
Many donors choose to set up a fund during their lifetime and experience the joy of watching their charitable dollars at work. You decide which nonprofit groups to support based on your personal interests and priorities. Benefits include an immediate tax savings from current income and a reduction in future estate taxes.
Deferred Giving
You may prefer to set up an estate plan that provides a tax advantage now and make your charitable gift later. Some examples include a Charitable Remainder Trust and gifts of life insurance or retirement plan assets. Deferred giving may result in an increase in current spendable income for donors or loved ones and later, a substantial fund to help others in your community. "Later" may mean a few years later or even a lifetime.
Wills
After providing for personal bequests, you may choose to set up a fund with the Foundation through your will. You will not only save on estate taxes, but also ensure that your charitable goals are continued for the future. The Foundation staff is available to help you create a fund in your will.
What Kinds of Funds Can I Establish?
Donor Advised Funds
The Foundation's most flexible fund, a donor advised fund allows you to make a gift in the amount and at the times that are most advantageous for you. For example, in a higher-income year you may wish to make a substantial gift to your fund and secure a sizable tax deduction, and then draw upon the fund to make charitable gifts in subsequent years. You or other advisors you appoint may recommend contributions to charitable causes or organizations over time. For tax purposes, you report only the one gift to the fund-not the individual gifts from your fund to individual charities.
Unrestricted Endowments
These permanent endowments generate income to address the community's most pressing concerns and those issues that change over time. By creating an unrestricted fund, you create a living legacy that will grow and change as the community does. Grants from unrestricted funds are made by the Community Foundation's Board of Directors.
Field of Interest Fund
A field of interest fund allows you to address a specific cause or issue -such as housing or children - without being locked into naming a particular nonprofit organization. You select the focus area and each year the Foundation supports promising projects in that field.
Special Interest Fund
If you have a longstanding interest in a particular charity you can set up a special interest fund to benefit that organization forever. The charitable organization you designate benefits from the Foundation's professional endowment and investment management. The Foundation also provides oversight to ensure your gift is used exactly as you intended.
Private Foundations
If you already have established a private foundation, you may find it desirable to convert to a fund at the Community Foundation. Advantages include:
- Greater administrative ease
- Tax advantages
- Fewer restrictions on grants and investment management expertise
Please call us if you'd like more detailed information on how to establish a relationship with the Community Foundation versus a separate private foundation.
Supporting Organizations
Supporting Foundations. A supporting organization is typically a nonprofit corporation with its own separate board of directors and a distinct identity. Although it has many of the advantages of a private foundation, it is treated for tax purposes as a public charity. By using the Community Foundation, the supporting organization maintains maximum flexibility to make its own decisions regarding charitable grants. The Community Foundation staff can provide administrative assistance, help review grant requests and even provide customized services as needed. The public charity status of a supporting organization may allow you to reach your charitable goals more easily.
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